Ontario Auto Reforms – July 1, 2026
Understanding Ontario Auto Insurance
What's Changing
Starting July 1, 2026, Ontario is introducing changes under the Insurance Act (Ontario) that will provide Ontario drivers with more choice and control over their Statutory Accident Benefits (SABs) coverage under Ontario auto insurance policies.
Some SABs will become optional when you buy or renew your automobile insurance policy on or after July 1, 2026. Because you now have more choice, it’s important to review your SABs coverage to make sure it fits your unique needs. SABs are “No-Fault” which means they’re available regardless of who caused the auto accident.
Before you consider making changes to your SABs coverage, it’s important to review your personal and workplace benefits policies (as applicable), as they may provide similar coverage. Opting out of certain optional SABs might save you money in the short-term, but if you’re in an auto accident, opting out of certain SABs may cost you more money in the long run.
It’s important to weigh these short-term savings against the potential long-term costs of opting out.
Although existing auto insurance policies will renew with the same coverage and limits, who is covered under policies for newly optional accident benefits will change on July 1, 2026, regardless of an auto insurance policy’s renewal effective date.
As a result, optional accident benefits under your auto policy will only cover the following individuals:
- The named insured
- The spouse of the named insured
- Dependents of the named insured and of the named insured’s spouse
- Persons specified in the policy as drivers of the automobile
What’s Staying the Same
Standard medical, rehabilitation and attendant care benefits will continue to be included in every auto insurance policy in Ontario. These benefits will help cover the cost of treatment, recovery and personal care if you’re injured in an auto accident. Optional SABs—such as supplementary medical, rehabilitation and attendant care benefits, dependent care benefits, and indexation benefits—will stay optional. Starting July 1, 2026, you can still choose to add these benefits to your auto insurance policy in Ontario.
We’re here to help.
Renewing Your Auto Insurance Policy
Your auto insurance policy will renew automatically with your current coverage and limits (unless you agree with your insurer in writing to decline certain SABs or make changes to them). Starting July 1, 2026, if you purchase or renew an automobile insurance policy you can chose to remove SABs that became optional from your insurance policy, but it’s important to consider how removing these benefits could impact you.
Before making any changes to your SABs coverage, speak with a licensed Ontario Broker to understand what changes to your SABs coverage may be right for you and how changes in your personal circumstances (starting a new job, going back to school, or taking on caregiving responsibilities) may impact what SABs coverage you need.
Key Considerations
If you found yourself unable to work as a result of an accident, where would your income come from?
Income Replacement is optional. Without a disability or workplace plan, you could lose your income if you can’t work.
Are you the primary caregiver for a dependent such as a child, elderly parent or a person with a disability?
Caregiver benefits are no longer automatic. Opt in to help cover care costs if you become injured in an accident.
If you had a complete inability to carry on a normal life, what costs would you be unable to recover?
Non-Earner benefits provide support if you’re a student or are unemployed and can’t manage everyday tasks after an accident.
If you became impaired from an accident, would you need to hire someone to do your house cleaning, shoveling and yard work?
Housekeeping & Home Maintenance benefits help with cleaning and household tasks if you can’t carry them out yourself.
Next Steps
1. Check your current insurance policy: See what SABs coverage you already have.
2. Look at other coverage(s) you have: Review workplace or private benefits plans including life and health insurance.
3. Consider your needs: Think about which SABs are right for you.
4. Talk to a licensed Ontario Broker: Get advice and explore your auto insurance options before making any changes to your SABs coverage.
Click here for more information.
Statutory Accident Benefits: What’s Mandatory and What’s Optional as of July 1, 2026
| Benefit | Coverage | Mandatory or Optional | If You Opt Out |
|---|---|---|---|
| Medical, Rehabilitation & Attendant Care | Covers medical expenses, therapy and personal care for injuries from an accident, including doctor visits and physiotherapy | Mandatory | Included in every auto insurance policy |
| Income Replacement | Helps replace lost income if you (or someone else covered under the auto policy) is injured and loses income from not being able to work | Optional after July 1, 2026 | No lost income support — may need to rely on Employment Insurance Sickness Benefits, Canada Pension Plan Disability Benefits or Ontario Disability Support Work |
| Caregiver | Helps cover caregiving expenses if you or another covered person is injured in an auto accident and can no longer provide care for a household member, such as a child or aging parent, who needs it | Optional after July 1, 2026 | Excluded from your policy |
| Non-Earner | If you or another covered person is a student or is unemployed and an auto accident keeps you (or another covered person) from leading a normal life, this benefit can provide financial support while you recover | Optional after July 1, 2026 | Excluded from your policy |
| Lost Educational Expenses | Reimburses certain costs you (or another person covered under the policy) incurred to enroll in education programs (e.g. college, university or other schooling) and are unable to attend as a result of an auto accident | Optional after July 1, 2026 | Excluded from your policy |
| Visitor Expenses | May cover reasonable and necessary travel and lodging costs of visitors (e.g. parents or siblings) if they visit you (or another person covered under the auto policy) while you (or the other person with coverage) is in treatment or recovering from auto accident-related injuries | Optional after July 1, 2026 | Excluded from your policy |
| Housekeeping & Home Maintenance | Helps cover costs if you or another covered person is unable to perform the housekeeping and home maintenance tasks normally done before an auto accident | Optional after July 1, 2026 | Excluded from your policy |
| Damage to Personal Items | Covers the cost of repairing or replacing personal items like clothing, prescription glasses or hearing aids that were damaged in an auto accident | Optional after July 1, 2026 | Excluded from your policy |
| Death | May compensate some members of your family if you (or another person covered under the policy) is killed as a result of an auto accident | Optional after July 1, 2026 | Excluded from your policy |
| Funeral | May pay for some funeral expenses if you (or another person covered under the policy) is killed as a result of an auto accident | Optional after July 1, 2026 | Excluded from your policy |
Disclaimer
The descriptions of SABs in this document is a summary of the statutory accident benefits in Ontario Regulation 34/10. Do not rely on this summary alone. For full details, refer to the new SABs wordings available at fsrao.ca or speak with a licensed Ontario insurance broker.
Want the detailed questions and full benefit descriptions?
